The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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It was obvious BT were going to see massive job cuts in the coming years. There's the PSTN switch off at the end of 2025, Convergence to cloud meaning all legacy services will move to IP and FTTP access networks needing less staff to maintain. There will be jobs lost to AI, maybe in monitoring and network operations and some front and back office staff, but the majority will go due to the end of legacy services.
Wisebear……….at these low prices sentiment will soon change. At these present prices the dividend equates to about 9%.
Its called automation. An increasing number of business workflows are becoming automated and its just the beginning. You simply need less need people to do mountain of manual activities.
As an example, ca 90% of finance people at organisations spent their time processing and manipulating excel sheets, where it can easily be automated.
Looks like BT is also now going to cut overheads with thousands of staff being cut just when all phone /broadband companies jack up prices to all of about 14%, are VOD & BT run by the same people.?
Sentiment is winning over fundamentals currently
And then you have the likes of RR with all dem losses and still a mcap of about half of Vod.
BT is oversold, VOD is massively oversold.
Wisebear…….. https://www.investopedia.com/terms/m/marketcapitalization.asp
Something I don’t understand:
Vod net profit is more than double BT net profit annually. But the mcap is only 50% higher for vod. Can anyone explain
Feel like i missed a bit of a row.
I have also been getting it right.
I have been asleep all evening getting recharged so that i will get the real feel where Vodafone is going next.
So far i have predicted it would go lower and have been correct.
Will let y'all know what is coming next tomorrow after a good night sleep.
After reading posts on these boards for several years you get to realise there are two types of posters here
those who don't know and those who don't know that they don't know
One thing we do know is this share has been on it's famous ski slope since 2018, will it /can it change direction from here well maybe it can or maybe it will still be the same old underperforming share for the next 5 years or more
after reading about people saying they are thinking of going big into this share, is it worth the risk ?
But whether you agree or not, do us all a favour and give the insults a rest guys, they are not helpful
Sorry Gary, but I think you need to re read your last post to me. On an obnoxious scale of 1 to 10. That has got to be the perfect 10 surely. But seriously mate, you really need to calm down.
Mrcautious. Why is it that someone who is honest about there losses is a man who is panicking, why is that obnoxious? Would you rather I pretend I am making a profit. I am loseing money on vod. I admit it. But am not panicking, because I can afford it. All I ask is for you to be honest, is that too much to ask? Why are you turning this forum into a battle ground? Lets keep it freindly please.
Gary. You are the obnoxious one. You just need to calm down. Time to move on.
Take a look at page 29 (appendix 1V).
Obviously the sales of vantage, hungary, ghana made a dent so that net debt reduction/ progression is improved materially this FY, €33.4Bn vs €41.6Bn last year. So the improvement in net debt to EBITAal ratio is a big + and could improve VODs rating profile. We will probably see something from the rating agencies shortly.
As a lot are saying, VOD may need another big deal to convince the market and perhaps thats UK and/or Spain (Italy could be €11.6Bn) but I think they need the cash flow until all service revenue/ EBITDAal cyclinders firing across the group.
The bond maturity profile on page 29 is not particularly onerous and not a cliff edge as many try to say on here as you can see on the profile. Average c.2.5% coupon out 2063 and VOD can roll the debt forward eg spectrum never wears out. And while there there is a cost too reuse it for 5G etc, the likes of E% are underwriting the future value of technology generation and their governmental/ economic interests. VOD in the meantime has the focus just on getting more subscribers and strategy/ marketing budgets allocated according to MDV. If the 3 UK merger happens the 5G capex will be wrapped up in the deal I imagine and net positive for VOD.
So if debt is an issue, imo its that VOD has a very low coupon rate which makes the bonds less valuable when traded as you can get 5, 6 or 7% elsewhere at the moment and if I was involved would be arbitraging between the SP and the bond price...
So to answer your question, how bad is the debt?. Well, how high are interest rates going to go, and how much will VOD bonds drop in price and how much is hedged to VOD SP? I dont know. But for sure, the interest cost to VOD is very low. Managing the weighted average cost of capital is also made prominent in MDVs slides and she has highlight where she wants improvements.
https://investors.vodafone.com/sites/vodafone-ir/files/2023-05/Vodafone-FY23-Results-Presentation.pdf
Go for it. I’m of the view that there’ll be some TR1 notifications soon.
"I wrote "critical of " VOD , not " critical to " VOD"
Indeed, my mistake.
It's about time VOD delisted from the US, it's doing us no favours and opens the company up to litigation.
Well said & most of us on here agree Mr Cautious. What the obnoxious dannyboy & LTI need to realise is that Porsche keeps getting it right & they keep getting it wrong & that’s why they keep getting poorer. Some fools just never pay attention, shame.
Fleccy
I wrote "critical of " VOD , not " critical to " VOD..
They have had Put Options on and sometimes off the last 3-4 years over there, in fact ever since it dropped below 200p ...a group of players over there seem to have constantly looked to bet against the share price. A few over there just generally have collectively aimed to hit this I think
Type in Tiger Global and Tesco into Google. Do not trust short tracker. These sort of crooks are registered in the Cayman Islands.
Danielh - I dont think you can take it though. Your posts show all of the psychology of a man panicking over his losses which I think is why you are so obnoxious to many people - take comfort in the fact that this is very common on these share BB's...
Pokerchips, please explain why the US is critical to Vodafone?
I'm not asking to be funny, I'm just curious what assets they have in the US apart from a few Submarine Cable Stations and some assets at POP's, and some leased backhaul. I'm not sure they need a US listing unless it's a regulatory requirement for operating the Submarine Cables, but I doubt that's the case.
Just loving this, what a short. I thought my best ever was Aston Martin, from 1740 to .62….a beautiful 6 figure profit in less than 18 months but this is still luverly. You muppets need to get yourselves over to IG and see if you can still get a position at a reasonable price, when the div is cut this will be sub .50p.
I think MDV under promised to exceed on next results.
The share is manipulated to allow big players to buy cheaper.
Who knows…..
"The US has been critical of VOD for 2-3 years now ....and to be honest..to let Germany EBITDA slip by 6.1% ...makes some in the US say " we told you, they weren't performing" ...and this is a slap down to say they were right "
Can you explain why the US is critical for Vodafone?